Responding to media reports around draft EU proposals on Common Consolidated Corporate Tax Base (CCCTB) Fianna Fáil Spokesperson on Finance Michael McGrath TD stated that the government must defend Ireland’s interests in future discussions. The draft proposals are due to be launched by the European Commission next week before being debated by the EU Parliament and European Council.
Deputy McGrath stated that “These two part proposals are a shift in direction from the Commission from the failed effort to bring in CCCTB in 2011. Ensuring companies and multinationals pay their fair share of tax and reducing compliance costs are important goals,” said McGrath.
“However, the latter half of the proposals represents a significant threat to Ireland’s tax sovereignty. Consolidating the tax base will hand the Commission too much power and influence over the tax rates of individual member states. In effect it is tax harmonisation through the back door.”
“The government should engage constructively with the proposals but not be afraid to fight Ireland’s corner in defending our 12.5% Corporate Tax rate which is non-negotiable. With Brexit and the Apple case already putting pressure on our industrial strategy, we need to assert the rights of smaller member states to determine their own taxation regimes. We must be able to compete with other countries to attract and retain Foreign Direct Investment which already sustains 187,000 jobs across all of Ireland.”
“The proposals come at the same time as the EU prepares to deal with the UK invoking Article 50. Brexit means Ireland will be losing one of its closest allies at the negotiating table. We need to build new alliances with other member states who are committed to maintaining state’s rights over our taxation regime.”
“Ultimately Ireland has the right to veto any part of the proposals that infringes upon our core national interests. The government must, at all costs, protect Irish interests in what will be a long process ahead,” concluded McGrath.